Governance: a beacon for successful outsourcing

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The evolution of outsourcing and the advent of emerging trends are offering companies more transformative opportunities and competitive advantages than ever before. However, these advancements also generate additional layers of complexity between organizations and their service providers. For companies to realize the full value of outsourcing, governance cannot be placed on the back-burner — it must be a priority.

“Think action. An effective governance model needs to have the right people, tools and methodologies in place, not only to analyze the current state and provide real-time, accurate interpretations, but also to set forth an actionable road map and solutions to achieve the desired business outcomes and maximize contract value potential.”

Mark Voytek
Principal, EY Outsourcing Advisory

This article explores the dos and don’ts of effective outsourcing governance, contrasting what ineffective versus effective governance looks like across eight dimensions, such as management of risk and compliance, relationships and change, and issues and obligations.

The article also highlights emerging trends in outsourcing, such as digital enablement, innovative commercial structures and new operating models. These factors can enable organizations to balance expectations, avoid diminishing returns in their outsourcing relationships, and leverage third-party expertise to help better support their enterprise ecosystems and expanding global footprints.

The article was written by:

  • Rob M. Singleton
    Manager, Performance Improvement Advisory — Outsourcing Advisory and Management, EY, US
  • Jessica Y. Xiong
    Advisory Consultant, Performance Improvement Advisory — Supply Chain & Operations, EY, US
  • Shannon Wey
    Advisory Consultant, Performance Improvement Advisory — Supply Chain & Operations. EY, US

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